Article III, Section 6(8)(b) of the General Appropriations Act (Special Provisions Relating Only to State Agencies of Higher Education); Texas Government Code 2252.061(1).

Purchases from auxiliary enterprises

An institution of higher education may purchase goods and services from its auxiliary enterprises, including its bookstores, only if the institution treats the enterprises as it would any independent vendor or provider of goods and services.

In other words, an institution of higher education may purchase goods and services from an auxiliary enterprise only if the purchase is advantageous to the institution and determined without considering the purchase’s effect on the enterprise.